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GBP under pressure as risk averse markets move to USD safe-haven

GBP under pressure as risk averse markets move to USD safe-haven

General market sentiment was back in a risk averse mood yesterday, as concerns that the Fed may push the economy into recession by hiking rates aggressively to try and tame inflation weighed on sentiment. 

On currency markets, the action was somewhat uneventful. Safe havens held the upper hand amid the weaker tone to risk appetite. The dollar and the yen both registered some slight gains against the euro. Elsewhere, sterling came under downward pressure. 

As trading gets underway this morning, the firmer tone to the dollar sees EUR/USD open back below the $1.05 threshold and GBP/USD operating back near the midpoint of the $1.23-1.24 range. EUR/GBP is changing hands up in the top half of the 84-85p corridor. 

Turning to today, there is a sparse data schedule ahead. However, the release of the latest ECB monetary policy account will garner close attention on markets. With spiralling inflation and talks of recession on the horizon, utilising forwards to mitigate risk is crucial. Speak to one of our team today for more details. 

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